Stock Market Today Mid-Morning Updates
On Thursday, the Dow Jones Industrial Average is down by 300 points as investors continue the broad sell-off and investors continue to digest more red-hot inflation data. Prices remain elevated in April, signaling more aggressive inflation control methods by the Federal Reserve. The consumer price index showed that inflation rate is still a near 40-year high despite a marginal pullback from March.
Shares of BeyondMeat (NASDAQ: BYND) plummeted today by over 25% on today’s opening bell. The company reported a larger than expected quarterly loss and revenue which was short of consensus estimates. Shares of WeWork (NYSE: WE) are in focus today after it reported a revenue that exceeded its prior guidance. Also, Sonos (NASDAQ: SONO) is up today by over 10% on today’s opening bell after reporting its quarterly results today. The company saw better than expected revenue as it enjoyed continued high demand. Bumble (NYSE: BMBL) is up by 20% today exceeding analyst estimates. The company saw a 7.2% rise in paying users during the quarter.
Among the Dow Jones leaders, shares of Apple are down by 1.57% today while Microsoft (NASDAQ: MSFT) is also down by 1.66%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading mixed on Thursday. Among the Dow financial leaders, Visa (NYSE: V) is down by 0.85% while JPMorgan Chase (NYSE: JPM) is also down by 0.57%.
Shares of EV leader Tesla (NASDAQ: TSLA) are down by 0.68% on Thursday. Rival EV companies like Rivian (NASDAQ: RIVN) are up by 24.37%. Lucid Group (NASDAQ: LCID) is also up by 8.80% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today.
Dow Jones Today: U.S. Treasury Yields Drops As Wholesale Inflation Rose In April
Following the stock market opening on Thursday, the S&P 500, Dow, and Nasdaq are trading lower at 0.31%, 0.33%, and 0.12%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 0.25% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also down by 0.27%.
The benchmark 10-year U.S. Treasury yield dropped to 2.86% today after another key inflation report came out. The producer price index rose 0.5% in April, in line with consensus estimates. Year-over-year, April PPI was up by 11% while core was up by 8.8%. This would indicate that producer prices are also accelerating.
A separate economic report today showed that jobless claims totaled 203,000 for the week ending on May 7, an increase of 1,000 claims from the previous period. This was also slightly above the Dow Jones estimates of 194,000. Bitcoin also continues to slide below $27,000 on Thursday for the first time in more than 16 months.
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Disney Stock Dips After Missing Estimates; Sees Continued Recovery In Streaming And Parks Businesses
Disney (NYSE: DIS) is coming under the earnings microscope at today’s opening bell. As you can imagine this is a result of the company’s latest quarterly financial update from yesterday. To begin with, the company fell short of Wall Street’s projections for earnings per share and revenue. In detail, Disney reported earnings of $1.08 per share on revenue of $19.25 billion. For reference, this is in comparison to consensus analyst estimates of $1.17 and $20.1 billion.
Nevertheless, investors may want to take a closer look at the company’s key operational figures. Simply put, this would be revolving around how Disney’s two core businesses are doing. This is the company’s parks, experiences, and products (PEP) division and streaming service respectively. On the PEP front, Disney raked in a total revenue of $6.7 billion for the quarter, a year-over-year increase 109.6%. Even while facing COVID-related headwinds amongst its Asia theme parks, its PEP revenue is above consensus expectations of $6.4 billion.
Not to mention, Disney is also seeing persisting momentum in its streaming business. For the quarter, its total streaming subscriber base grew by 8 million, substantially more than the 5 million projection from Wall Street. On the operational front, it seems that Disney is firing on all cylinders. After considering this, some investors could be considering DIS stock amidst its current weakness.
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Coupang Stock Jumps As Company Sees Record Gross Profits
Also in the news today is Coupang (NYSE: CPNG). Evidently, CPNG stock is currently looking at gains of over 16% at today’s market open. By and large, this is mostly thanks to the company’s latest earnings release. During yesterday’s post-market hours, Coupang posted record figures. Namely, the South Korean e-commerce company is boasting record gross profits and gross margins for the quarter. In detail, Coupang’s total gross profit is in at $1.04 billion. This translates to year-over-year gains of about 42% on this front. Adding to that, the company’s Product Commerce department is also on the rise. For the quarter, it flipped towards profitability and is looking at a revenue hike of 20% year-over-year. As one of the heavy-hitters in Asia’s e-commerce scene, CPNG stock would be gaining attention now.
Speaking on Coupang’s quarterly performance is CFO Gaurav Anand. He highlights, “Powered by our unmatched customer experience and services, we continued to grow at multiples of the overall e-commerce segment with 32% year over year constant currency revenue growth.” Anand then goes on to explain that Coupang is focusing on “customer-driven innovations as well as operational excellence,” as its current growth strategy. For one thing, as parts of Asia are seeing a resurgence in coronavirus cases, Coupang’s core services would remain relevant. Even without the pandemic, consumers could still opt for the company’s offerings for the sake of convenience. Nevertheless, the real question now is whether all this can benefit CPNG stock in the long run.
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